DPM – Lower earnings in 2023 but attractive cash dividend
- DPM announced 1Q2023 results with revenue of VND 3,289 bn (down 44.1% YoY) and NPATMI of VND 260 bn (down 87.6% YoY). The bad results mainly came from the drop in selling prices as well as the high gas input in the first 3 months.
- We believe that 2Q2023 number will be lower than the same period last year but improve QoQ thanks to a better selling price and higher sales volume.
- For 2023, we project that revenue and NPATMI will decrease by 28.5% and 69.4% respectively, which is mainly due to low selling price and high input gas price. Currently, we see the Brent forecast around 80 USD/barrel – 90 USD/barrel.
- With the 2023 earnings forecast of VND 1,704 bn, the P/E 2023 will be 7.5x, which is not attractive in our opinion. However, the remaining cash dividend of 2022 ~ VND 3,000/share, could be the short-term catalyst for DPM share. So we stay NEUTRAL for DPM with the target price of 900.
PetroVietnam Fertilizer and Chemicals Corp. PetroVietnam Fertilizer and Chemicals Corporation is a Vietnam-based manufacturer of agricultural chemicals. It manufactures and trades diversified fertilizer products, including urea fertilizers; nitrogenous phosphatic potassic (NPK) fertilizers, liquefied ammonia, as well as other industrial gases and chemicals used for oil and gas exploration and refinery. The Company is also involved in the provision of technical services in fertilizer and petrochemical production.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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